Peter K. Grom

Peter K. Grom inquired about the impact of OWYN's product quality issues on Q4 performance, the brand's recovery path, recent performance trends, and how these factors influence the full-year sales guidance for OWYN.

Answer

President and CEO Geoff Tanner explained that OWYN's Q4 slowdown was exacerbated by a pea protein sourcing issue from Q2 production, impacting taste and texture on certain lots. He confirmed the issue is largely rectified with a new formulation shipping since August, and aggressive trade and marketing investments are underway to re-accelerate trial. Tanner expressed continued confidence in OWYN's long-term trajectory, citing its leadership in clean label, distribution upside, low awareness, and high-growth powder business.

Peter K. Grom asked about the impact of OWYN's product quality issues on Q4 performance, the brand's path forward, recent performance trends, and how these factors influence the full-year sales guidance for Simply Good Foods.

Answer

President and CEO Geoff Tanner explained that while Q4 slowing was expected due to lapping distribution wins, the product quality issue related to pea protein sourcing prior to acquisition impacted taste and texture on certain lots, affecting consumption and reviews. He noted the issue is largely resolved with a new formulation shipping since August, increased trade, and marketing investments. Tanner expressed continued confidence in OWYN's trajectory, citing its leadership in clean label, distribution upside, low awareness headroom, and strong growth in powders, with significant marketing and innovation planned.